Ann: Sangomar Project Update, page-68

I tend to agree with you Joseph, this is probably a - best in a bad situation - appropriate move. Whilst there is still time, unfortunately time is also the enemy...financing looks difficult from here. Sangomar, unbelievably is now a liability.

FAR's attention must now be to save the company. So here's my take of what is possibly playing out....

• WPL would like all of FAR but will be playing hard ball and not prepared to pay any sort of premium for a takeover
• WPL would like all of FAR's Sangomar % but again would be playing hard ball on price on it
• Potential outside buyers of FAR's Sangomar % will know FAR is in distress over its share to the project so will be playing hardball
• In a potential default, WPL would only receive 35% of FAR's portion (when I suspect WPL would like all)...and in a potential default any keen external buyers would miss out
• By going "default" FAR potentially pits WPL (and its desire for the full amount) against any keen outside potential buyers (ie. see what competition can be generated)
• With today's approach FAR keeps its cash warm to either pay up later, or to press on afresh once its involvement in Sangomar ceases
• FAR would still have good Gambia and Guinea Bisseau acreage to fight another day (and some handy cash in the bank, and no debt).

Without question today's announcement is a shocking position for FAR (and shareholders) to be in after the incredible drilling successes - and which management should hang their collective heads in shame about.

There is currently very little value in FAR share price. Most existing shareholders can only now choose between significant tax losses or holding on for hope of some sort of rebound that time and maybe a find in Gambia might one day bring...an unbelievable choice after what should have been an unbelievable story.

dodds